- The number of wallets with coins between 1,000 and 10,000 has increased sharply.
- More than 60% of whale accounts on Binance were long on Bitcoin.
Bitcoin [BTC] has retreated sharply since the adoption of spot ETFs, dampening the good mood among market participants.
However, seasoned investors, who had done their homework on the expected medium to long-term prices of the king coin, continued to accumulate the assets in large quantities.
Whales busy accumulating
According to CryptoQuant, a sharp spike in the number of wallets holding between 1,000 and 10,000 Bitcoins was observed in January. This is despite the price falling 12% since the peak on ETF approval day.
Source: CryptoQuant
A separate set of data from InTheBlok revealed that whale investors have increased their BTC holdings by 76,000 since the beginning of the year, which is worth more than $3 billion at current market prices.
Source: IntoTheBlock
Optimism for the future
‘Buying the dip’, as it is commonly referred to, is one of the most popular mantras in investment circles.
Investors buy assets when the price has fallen, with the expectation that the price will rise in the future.
As AMBCrypto previously reported, most market analysts expect significant capital inflows into the Bitcoin market following the adoption of spot ETFs.
One study even predicted that the king coin would reach $100,000 by the end of the year, and almost $200,000 by the end of 2025.
These positive forecasts may encourage experienced investors to ignore the short-term crisis and pack their bags for the eventual supercycle.
Another interesting metric that reflected the bullishness of whales on Bitcoin was the number of long positions they took.
According to AMBCrypto’s analysis of Hyblock Capital data, more than 60% of Whale accounts on Binance were long King Coin at the time of writing.
Long exposure has increased sharply since spot ETFs were adopted, reinforcing the arguments made earlier in this article.
Source: Hyblock Capital
The outflow of grayscale continues
Meanwhile, Bitcoins continued to exit Grayscale Bitcoin Trust ETF (GBTC), with net outflows of $255 million on Friday, according to AMBCrypto’s reading of SoSo value facts.
Read Bitcoin’s [BTC] Price forecast 2024-25
Other ETFs, except Grayscale, recorded net inflows of $269 million.
Since listing, spot ETFs have collected $756 million as of January 26, severely dragged down by more than $5 billion in outflows from GBTC.